Tegel IPO

[Valuegrowth]

Holding to get full $1.27 price or higher as Goldman Sachs advising Tegel. Probably will find extra value somewhere since listing to back up original IPO price. Average cost price reduced for Bounty by early on-market purchasing shows they are serious and really want this deal to progress. One would assume Bounty would NOT be interested in dumping their holdings currently purchasing back to 80cents taking a huge loss if approval not forthcoming. Either way the future for Tegel looking more promising especially if chicken glut eliminated by possible export market opening with Bounty.

Chicken prices are sure to rise.......................................

According to industry analysts, the poultry market outlook remains positive over the next decade. Definitely, there will be great demand for meat in most populous countries such as south Asia, China, Indonesia, Russia, Japan and the USA not only in the coming decade but also in the coming three decades. Populous countries will have to feed people and animals. Naturally they will create demand for meat and any shortage will have to meet from import. Populous countries will have less arable land in the future as well.

By 2024 Population growth in developing countries will remain nearly double that of developed regions and poultry meat will have a market more than half of the world’s share of additional meat produced by 2024. FAO projects that poultry meat consumption will be close to 133 million metric tons in 2024.Developing countries will account for the majority of growth in poultry meat production over the next 10 years. In contrast, developed poultry markets will be challenged to comply with more stringent environmental and animal welfare regulations and limiting expansion possibilities. Brazil and the USA still could become top poultry producers and major poultry exporters in the world by 2024.

Could Tegel capture some market share in the growing poultry market in the coming decade by becoming competitive?
Could they also become another delisted company?